What Are Low-Price FBA Rates?
Download Amazon Seller Guide
This guide will help you get started, understand the basics of Amazon selling, and explain in simple words how it all works.
Recently, Amazon announced that it would end its FBA Small and Light program. The program, which offered lower fulfillment fees for small, lightweight items, will be replaced by Low-Price FBA fees.
Amazon said the move is intended to simplify the selling process for sellers of low-priced items. The new option will also offer the fast FBA delivery speeds that customers prefer.
In this post, we will discuss what products are eligible for the Low-Price FBA and what will be the new rates.
Related: Seller Assistant App Extension Review
Seller Assistant App — the Ultimate Tool for Amazon Online Arbitrage
What Are Low-Price FBA Fees?
Low-Price FBA fees are the new rates introduced by Amazon to replace FBA Small and Light program. According to Amazon, the new Low-Price FBA rates will provide a better value for sellers of low-priced items.
The FBA Small and Light program will end on August 29, 2023. The program offered lower fulfillment fees for small, lightweight items. It will be substituted by Low-Price FBA rates, which will be available for all items priced below $10.
Certain items that were enrolled in the FBA Small and Light program will see a slight increase in cost per item under the new rates. However, they will benefit from faster shipping speeds. The shipping speed for these products will match the standard FBA orders.
Sellers of low-priced items that were not previously enrolled in the FBA Small and Light program will see a significant decrease in their fulfillment costs under the new rates.
Related: Amazon FBA Small and Light Program: Everything to Know in 2023
Key points to remember about Low-Price FBA fees
The table below summarizes the essential facts about Low-Price FBA fees.
Note. The transition to Low-Price FBA Fees will apply to the US Small and Light program.
What Items Are Eligible for Low-Price FBA Fees?
The new fees will automatically apply to all products priced below $10.
The inventory previously enrolled in Small and Light and priced between $10-12, which is not covered by the new rates, will automatically get the standard FBA rates and shipping speed.
Note. Restricted items, such as adult, hazmat, and temperature-sensitive products priced below $10, will also be charged according to Low-Price FBA rates.
What Are Low-Price FBA Rates?
On average, the Low-Price FBA rates per unit will be $0.77 lower than the standard FBA fees. However, compared to the Small and Light program, the average fee per item will be $0.30 more with the Low-Price FBA fees. On the other hand, that will be compensated by standard FBA delivery speed.
Low-Price FBA rates
You can find the detailed Low-Price FBA rates breakdown in the table below.
Note. Low-Price FBA rates apply to fulfillment fees only. All other Amazon fees remain the same.
What Will Happen to the FBA Small and Light Program?
Amazon will close the FBA Small and Light program on August 29, 2023. Instead, they will introduce Low-Price FBA rates for the low-priced inventory. You can’t enroll any new products in FBA Small and Light from July 18, 2023.
All inventory eligible for the new program will automatically get new rates. This inventory will not be charged peak fulfillment fees in 2023.
The Small and Light inventory will be charged the corresponding fees until the program closure on August 28.
Is it necessary to remove the SKUs from Small and Light?
Amazon will enroll all inventory eligible for Low-Price FBA automatically. There’s no need for you to take any action.
If your SKUs are not covered by the new rates (the items priced between $10-12), they will still be eligible for FBA. The inventory will be linked to the SKU and will not become stranded.
FAQ
What is the price limit for Amazon FBA Small and Light?
The price limit for Amazon FBA Small and Light is $12. Items priced above $12 are not eligible for the program. Note that enrollment in Small and Light has closed since July 18, 2023.
How do I change my FBA to Small and Light?
To change your FBA to Small and Light, you must first meet the program's eligibility requirements. If you do, enroll your products in the program through Inventory > Manage Inventory > Actions > Enroll in FBA Small and Light. Note that enrollment in Small and Light has closed since July 18, 2023.
What is the minimum quantity for FBA Small and Light?
The minimum quantity for FBA Small and Light is 24 units per product. That means you must send at least 24 units of each product to Amazon to be eligible for the program.
How much are FBA fees usually?
FBA fees vary depending on your product's size, weight, and category. The average FBA fee for an item is 10-15% of revenue for a standard-sized product.
How is the FBA fee calculated?
FBA fees are calculated based on your product's size, weight, and category. The fees are broken down into two components: fulfillment fees and storage fees. You can use Seller Assistant App’s FBM&FBA profit calculator to estimate the FBA fees for your products.
Final Thoughts
In conclusion, Low-Price FBA rates are a new set of fulfillment fees that will be available for all items priced below $10 starting on August 29, 2023. They are an average of $0.77 lower per item than the current FBA rates for these products.
If you sell low-priced items on Amazon, you should be aware of these new rates and how they will impact your bottom line. You can use Seller Assistant Аpp’s FBM&FBA profit calculator to quickly and accurately calculate all your Amazon fees.
Seller Assistant Аpp helps you select the most high-profit inventory to sell on Amazon. This popular new-generation extension helps you quickly source high-margin items and avoid problematic products with sales restrictions or IP complaints. It unites the FBM&FBA profit calculator, Quick View, Stock Checker, and Restrictions Checker features in one tool.
